Where will increasingly return seeking North American investors get their yield/income requirements? In the past they stayed mostly home, as things were going well...but no more.
When this happened in Japan some years ago, Japanese housewifes took over and diversified abroad.
Inflation has not roared back. Au contraire, 2 years post the US induced financial crisis most of the world has seen price stability. This along with oil prices barely moving out of the 70-80 $ a barrel range.
Value investing in the concept of owning for medium term investment shares which appear undervalued, have high cash dividends whily you await -and little or no financial leverage. It assumes the minimum risk maximum return way to new wealth creation.
High US/EU government and consumer debt along with low interest rates and weak currencies there are the recipe for a re-rating in Asia. It is one reason why the Thai stock market has held-up so well currently, despite its own political problems.
High ranking ETF' analyst/experts and fee based investment advisors want us to believe its the only rational way to invest in equities.
Its often their own excuse, because they are poor stock pickers and so go through all kinds of trouble still believing markets are efficiently priced and that you can't beat...
While the SET for now seems stuck below 800, some of my selections have been making upward moves, not least last week DEMCO. With this core choice more seasoned and recent members had ample time to load-up on, as its stock price sat around for some weeks before...
Favor investments with high current income.For example high dividend yields on un-leveraged Asian growth stocks, especially those removed from being vulnerable/dependent of Western economies. (EU & USA).